Utility, Risk and Demand for Incomplete Insurance: Lab Experiments with Guatemalan Co-Operatives
通过对危地马拉咖啡农进行实验室游戏，估计每个玩家的效用曲线，分解指数保险需求低的原因，发现消费者使用前景式效用函数评估概率保险。
Abstract We play a series of incentivised laboratory games with risk-exposed co-operativised Guatemalan coffee farmers to understand the demand for index-based rainfall insurance. We estimate an explicit utility curve for every player and hence predict expected utility demand under counterfactual scenarios. Using these estimates, we provide a precise money-metric decomposition of the extent to which the low observed demand for index insurance is driven by expected utility theory, or by behavioural issues arising from a prospect-style utility structure. Our results suggest that consumers value probabilistic insurance using a prospect-style utility function that is concave both in probabilities and in income.